Q.8 Critically examine the role of WTO in addressing the concerns of developing nations in global trade.
Ans: The World Trade Organization (WTO) was established in 1995 to regulate global trade and ensure fair practices. However, its role in addressing the concerns of developing nations has been a subject of debate
Positive Aspects:
- Provides a platform for developing nations to voice concerns (e.g., Doha Development Agenda).
- Offers technical assistance and capacity-building programs to enhance trade capabilities.
- Dispute Settlement Mechanism (DSM) ensures a rules-based system, benefiting smaller economies.
Challenges:
- Developed nations often dominate negotiations, sidelining developing countries’ interests.
- Subsidies in agriculture by developed nations distort global markets, harming farmers in developing countries.
- Intellectual Property Rights (TRIPS Agreement) often favor developed nations, limiting access to affordable medicines and technology.
- Implementation issues, such as non-tariff barriers, disproportionately affect developing nations.
While the WTO has made efforts to address developing nations’ concerns, structural imbalances and power asymmetries persist. Reforms are needed to ensure equitable global trade.
| Keywords: WTO, developing nations, Doha Agenda, TRIPS, subsidies, trade barriers. |
| Read this article : Rather than withdraw from WTO, India should strengthen trade multilateralism : Link Key Objectives of WTO To set and enforce rules for international trade to stimulate economic growth and employment.To provide a forum for negotiating and monitoring further trade liberalisation by lowering trade barriers and applying principles of known discrimination.To resolve trade disputes and contribute to the peace and stability of the world.To increase the transparency of decision-making processes, thereby giving the weak a stronger voice.To cooperate with other major international economic institutions involved in global economic management.To help developing countries take full benefits from the global trading system, thereby cutting the cost of doing business.To encourage good governance by reducing arbitrariness. |
10 Marks